Bitcoin's outlook for 2026 is clouded by significant market volatility and regulatory challenges. After a 30% rise in mid-2025, Bitcoin's value plummeted by year-end, contributing to a $1 trillion loss in the crypto market. Regulatory initiatives like the Genius Act and Clarity Act initially boosted market sentiment, but a 42-day government shutdown and $200 billion in liquidations in October disrupted progress. Bitcoin's price fell from $126,163 in October to $80,500 in late November, stabilizing near $90,000. The fourth quarter saw Bitcoin decouple from traditional asset correlations, with institutional adoption slowing due to market volatility and underperformance of digital asset trusts (DATs) and exchange-traded funds (ETFs). Despite these challenges, JPMorgan forecasts a potential rebound to $150,000 by 2026, contingent on regulatory clarity and favorable economic conditions.